Last Auto news - GM’s chairman ‘asked to leave’ by Barack Obama

Last Auto news - GM’s chairman ‘asked to leave’ by Barack Obama President asks Rick Wagoner to step down and calls for better restructuring plans before any more hand-outs

Rick Wagoner, the long-serving Chairman and CEO of GM, has stepped down from his post at the request of President Obama, who blamed a “failure of leadership” for the crisis the company now finds itself in. A stalwart of the firm - Wagoner joined GM back in 1977 and worked in a series of roles, until he became chairman in 2003.

Wagoner’s forced resignation coincided with Obama outlining a strict new set of conditions if GM and Chrysler are to receive yet more bail-out dollars, on top of the £14.4 billion that has already been dished out under the Bush Government.

According to Obama, GM and Chrysler’s restructuring plans did not go far enough to warrant the extra £15 billion in Government money the two manufacturers have asked for. As a result GM has been given enough operating capital for 60 days and Chrysler 30 days, by which time they must submit new, more extensive plans for the company’s future.

The US Government has also revealed it is working on a ‘cash for clunkers’ incentive scheme, to encourage consumers to replace old less fuel efficient cars with cleaner models. The scrapping system will be related to the one already in place in Italy and Germany - the UK government is currently in talks to decide whether the UK will adopt something similar, too.

We expect to hear more about the ongoing saga at next week’s New York Motor Show, where Auto Express will be reporting live - bringing you all the major news stories as they happen.